SECURITIES AND EXCHANGE BOARD OF INDIA
SEBI is a legal entity established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
The primary functions of the Securities and Exchange Board of India are to protect the interests of securities investors and to promote and regulate the securities market.
In the background
Prior to the existence of SEBI, the Director of General Affairs had the authority; acquired power in the Capital Issues (Control) Act, 1947.
In April, 1988 SEBI was appointed as the director of major markets in India under the auspices of the Government of India.
SEBI was originally a legal entity with no legal powers.
It became independent and was given legal power by the SEBI Act 1992.
SEBI is headquartered in Mumbai. SEBI regional offices are located in Ahmedabad, Kolkata, Chennai and Delhi.
The SEBI board consists of the Chairperson and many other members on a part-time and part-time basis.
SEBI also appoints various committees, whenever necessary to address the pressing issues of the day.
In addition, the Securities Appellate Tribunal (SAT) is designed to protect the interests of organizations that are affected by SEBI’s decision.
The SAT consists of the Chief Executive Officer and two other Members.
It has the same powers as given to a civil court. In addition, if anyone is aggrieved by a decision or a SAT order he or she may appeal to the Supreme Court.
Powers and functions of SEBI
SEBI is a law-abiding and quasi-judicial body that can write regulations, conduct inquiries, issue decisions and issue penalties.
It works to meet the needs of three categories –
Issuers – By providing a market place where issuers can raise their funds.
Investors – Ensuring the security and provision of accurate and precise information.
Mediators – By enabling a competitive professional market for mediators.
By Securities Laws (Amendment) Act, 2014, SEBI is now able to regulate any fundraising program that costs Rs. 100 cr. Or more and paste the goods in cases of non-compliance.
The SEBI Chairman has the authority to order “search and seizure of activities”. The SEBI Board may also seek information, such as telephone data records, from any individuals or businesses in connection with any collateral transactions under investigation.
SEBI performs the function of registering and managing the operations of large business funds and integrated investment programs that include joint ventures.
It also works to promote and regulate self-governing entities as well as to curb fraudulent and unfair trade practices related to security markets.
The stock market is one of the key indicators of the country’s economic health. The primary function of the regulator is to protect the interests of investors and to ensure that no wrongdoing occurs in the trade and that investors are not deceived.It has ensured a well-functioning market and driven market development: dematerialisation of shares, shortening settlement cycles, initiating nationwide electronic trading, introducing risk management systems, establishing clearing corporations, nurturing the mutual fund industry and so on.